Ship Building Contract (2007)Full Document 

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SHIP BUILDING CONTRACT

(Contract Number: CMEC2006C4196)

FOR

CONSTRUCTION OF ONE 2500 TEU CONTAINER VESSEL

(HULL No. YZJ2006-722C)

Between

SEASPAN CORPORATION

as Buyer

and

JIANGSU YANGZIJIANG SHIPBUILDING CO., LTD.

as Seller


TABLE OF CONTENTS

 

ARTICLE I — DESCRIPTION AND CLASS

   2

1. Description:

   2

2. Principal Dimensions and Characteristics:

   2

3. Classification, Rules and Regulations:

   3

4. Registration:

   4

5. Contract Specifications and Approved Drawings:

   4

6. Subcontracting and New Shipyard:

   4

ARTICLE II — CONTRACT PRICE AND TERMS OF PAYMENT

   5

1. Contract Price:

   5

2. Adjustment of Contract Price:

   5

3. Currency:

   5

4. Terms of Payment:

   6

(a) First Instalment:

   6

(b) Second Instalment:

   6

(c) Third Instalment:

   6

(d) Fourth Instalment:

   6

(e) Fifth Instalment:

   6

(f) Sixth Instalment (the “Delivery Instalment”):

   7

5. Method of Payment:

   7

6. Expenses:

   8

7. Advance Payment:

   8

8. Refundment Guarantee:

   8

ARTICLE III — ADJUSTMENT OF CONTRACT PRICE

   10

1. Delivery:

   10

2. Speed:

   11

3. Fuel Consumption:

   11

4. Deadweight:

   11

5. Container capacity:

   12

6. Reductions to be Independent of Each Other:

   12

7. Application of Adjustment:

   13

8. Effect of Rescission:

   13

ARTICLE IV — APPROVAL OF PLANS AND DRAWINGS AND INSPECTION DURING CONSTRUCTION

   14

1. Approval of Plans and Drawings:

   14

2. Appointment of BUYER’s Representatives:

   14

3. Inspection by BUYER’s Representatives:

   15

4. Rights of the Representatives:

   15

5. Facilities:

   17

6. Liability for the Representatives:

   17

7. Salaries and Costs:

   17

8. SELLER’s Obligation:

   17

9. Replacement of the Representatives:

   18

10. Responsibility of BUYER:

   18

11. Information to Representatives:

   18

ARTICLE V — MODIFICATIONS, CHANGES AND EXTRAS

   19

1. How Effected:

   19

2. Changes in Rules of Classification Society, Regulations, etc.:

   19

3. Substitution of Materials:

   20

 

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ARTICLE VI — TRIALS AND ACCEPTANCE

   21

1. Notice:

   21

2. Weather Condition:

   21

3. How Conducted:

   21

4. Method of Acceptance or Rejection:

   22

5. Effect of Acceptance:

   23

6. Disposition of Surplus Consumable Stores:

   23

ARTICLE VII — DELIVERY

   24

1. Time and Place:

   24

2. When and How Effected:

   24

3. Documents to be delivered to BUYER:

   24

4. Tender of VESSEL:

   25

5. Title and Risk:

   25

6. Removal of VESSEL:

   26

7. Notices:

   26

ARTICLE VIII — DELAYS AND EXTENSION OF TIME FOR DELIVERY (FORCE MAJEURE)

   27

1. Causes of Delay (Force Majeure):

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2. Notice of Delay:

   27

3. Definition of Permissible Delay:

   28

4. Right to Rescind for Excessive Delay:

   28

ARTICLE IX — WARRANTY OF QUALITY

   29

1. Guarantee:

   29

2. Guarantee from Manufacturers and Suppliers:

   29

3. Notice of Defects:

   29

4. Extent of SELLER’s Obligation:

   29

5. Remedy of Defects:

   30

6. Guarantee Period:

   31

7. Application to Defects Remedied:

   32

8. SELLER to Remain Liable:

   32

9. Guarantee Engineer:

   32

ARTICLE X — SELLER’s DEFAULT — RESCISSION BY BUYER

   34

1. SELLER’s Default:

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2. Effect of SELLER’s Default:

   35

3. Notice:

   35

4. Refundment by SELLER:

   35

5. Discharge of Obligations:

   36

ARTICLE XI — DEFAULT BY THE BUYER

   37

1. Definition of BUYER’s Default:

   37

2. Effect of BUYER’s Default on or before Delivery of VESSEL:

   37

3. Disposal of VESSEL:

   38

ARTICLE XII — ARBITRATION

   39

1. Decisions by the Classification Society:

   39

2. Proceedings of Arbitration:

   39

3. Notice of Award:

   40

4. Expenses:

   40

5. Entry in Court:

   40

6. Alteration of Delivery Date:

   40

ARTICLE XIII — ASSIGNMENT — SUCCESSOR AND ASSIGNS

   41

ARTICLE XIV — TAXES AND DUTIES

   42

1. Taxes and Duties Incurred in China:

   42

2. Taxes and Duties Incurred outside China:

   42

 

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ARTICLE XV — PATENTS, TRADEMARKS, COPYRIGHTS, ETC

   43

1. Patents, Trademarks and Copyrights:

   43

2, General Plans, Specifications and Working Drawings:

   43

ARTICLE XVI — BUYER’s SUPPLIES

   44

1. Responsibility of BUYER:

   44

2. Responsibility of SELLER:

   44

ARTICLE XVII — INSURANCE

   46

1. Extent of Insurance Coverage:

   46

2. Application of the Recovered Amounts:

   46

3. Termination of SELLER’s Obligation to Insure:

   47

ARTICLE XVIII — NOTICES

  

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